China Cheese Tariffs; USDA Farm Income Forecast

**Last month, Chinese officials announced they were lowering import tariffs on certain types of cheese.

However, while every bit of extra demand will help the fundamental situation, Stewart Peterson Market Analyst Naomi Blohm tells Agweb.com she doesn’t see an increasing appetite for cheese in China as a silver bullet.

She says milk prices could bounce another 50 cents in the near term but then they will do some sideways trading into the first quarter of 2018 because of strong milk production.

**The EPA finalized its Renewable Fuel Standards of how much ethanol and biodiesel may be blended into the gasoline supply.

The levels are roughly equal to this year’s numbers, which is sending mixed response around farm country. Corn producers are relieved at a small uptick in renewable fuel requirements, while biodiesel producers say the EPA didn’t listen.

The cellulosic standard is one area lowered for 2018. Opponents say that side of the industry hasn’t picked up as expected.

**The USDA is forecasting more stable farm profits after three years of decline, but their report has some bad news for farmers.

According to Brownfield, the USDA’s Economic Research Service report says net farm income is expected to go up 2.7% to more than 63-billion dollars this year, but after adjusting for inflation, that income will be about the same as 2016.

Farm production expenses are also projected to be up one-and-a-half percent this year.